At Do Good Events, many of our nonprofit clients incorporate fundraising games at their events. In Minnesota, there are a lot of rules and regulations to ensure these games are performed legally. So if you’re planning a nonprofit fundraising event in Minnesota and thinking about adding a game element such as a raffle, wine pull, mystery bags, or something creative, below is a brief overview to inform you on the steps you may or may not have to take to follow Minnesota state gambling laws.
Before we dive into the details, one super helpful tool is the Start Simple Guide that the The Minnesota Gambling Control Board (MGCB) recently released. It clarifies what nonprofits need to know before having fundraising games at their event. It’s a great resource because it’s straightforward and helps organizations make informed decisions.
Now, here are three things to keep in mind when planning your next fundraising event:
1. If It Has Consideration, Chance, and a Prize…It’s Gambling
In Minnesota, gambling has three key elements:
- Consideration – Someone gives something of value (money, time, ticket purchase, etc.)
- Chance – The outcome is based on luck, not skill
- Prize – There is something of value to win
If your activity includes all three, it’s considered gambling — and it’s regulated. Important note: Auctions are not gambling because they’re based on bidding, not chance.
Charitable gambling (also called lawful gambling) is the legal category where proceeds, after prizes, expenses and taxes, must support a charitable cause.
2. You May Not Need a Permit
Here’s where the Start Simple Guide becomes especially helpful. If the total value of prizes awarded at your event is under $1,500, you may not need a state permit from the Minnesota Gambling Control Board. Yay!
For many one-night fundraising events, keeping prize values lower can allow you to “start simple” without the added paperwork and reporting requirements. If you accept a lower prize value threshold, you may not be required to register with the MGCB at all.
That said, city regulations may still apply. Always check both state and local requirements before finalizing your plans. The city where your event is taking place and the city where your business is located.
3. Not Every Game Is Approved
Just because you’ve seen a fundraising game at another nonprofit fundraiser, it does not mean it’s automatically compliant in Minnesota.
The MGCB has specific categories of approved lawful gambling activities, including:
- Raffles
- Pull-tabs
- Paddlewheels
- Tipboards
- Bingo
Creative “spin-to-win” concepts, mystery bags/boxes, or games that mix skill and chance can unintentionally cross into regulated territory.
If you’re unsure, the best approach is to check directly with the MGCB at https://mn.gov/gcb.
Fundraising games can absolutely add energy and excitement to your nonprofit event. The key is making sure they’re structured properly so your organization stays compliant and protected.
